Comprehensive Agro Business Policy (2016-21)

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For Any Inquiry/Compliances regarding Comprehensive Agro Business Policy & Chief Minister Mission on Food Processing, please contact GAIC Office, Gandhinagar on every Monday Between 3.00
PM to 6.00 PM Only. If, Monday is holiday, you may contacts on next working day.

Additional Subsidy for Special Classes (Subject to terms and conditions)

1% additional interest subsidy will be provided to entrepreneurs below 35 years of age

Freight Subsidy will be available to Micro, Small and Medium Enterprises (MSME)

To ensure maximum benefit of globalization to the farmers of Gujarat, it is essential to encourage exports of agro and processed food products from the state. Considering this aspect in mind, provision for providing assistance for actual air freight and
sea freight paid by any person, group or institute (legal entity) is made under Agri Business Policy 2016

Air-Freight Subsidy

Under this, assistance of 25% of actual air freight paid by any industrial entrepreneur subject to maximum Rs. 10 lakhs per year per unit will be granted for export of any fresh or processed horticulture, milk, poultry or fish products from Cargo Complex
at Ahmedabad International Airport

40% of actual air freight paid up to maximum Rs. 15 lakhs per year per unit for export of organic produce

Sea-Freight Subsidy

Under this, assistance of 25% of actual sea freight paid by any legal entity subject to maximum Rs. 10 lakhs per year per unit will be granted for export of any fresh horticulture produce from Cargo complex of Gujarat state

Assistance of 25% of actual sea freight to every unit paid by subject to maximum Rs. 10 lakhs per year per unit will be granted for export of any fresh horticulture produce

40% of actual sea freight paid subject to maximum Rs. 15 lakhs per year per unit for export of Organic Fresh Horticulture produces

The subsidy shall be granted for a maximum period of 5 years per unit

Sample Testing

If samples are required to be sent in foreign country for exporting edible agro products and expenditure is incurred for getting sample passed for export, assistance of 25% of actual legal expenditure (except expenditure incurred for purpose of traveling
etc) incurred on it shall be granted limited to Rs. 2 lakhs per annum and maximum limit per beneficiary will be Rs. 5 lakh in 5 years

50% of the fees payable to recognized International Certification Authority and 50% cost of testing equipment and machineries required for that certification totaling up to maximum amount of Rs. 10 lakhs assistance will be granted

Financial Assistance for Skill Enhancement

Assistance will be provided to Agro and Food Processing units / infrastructure projects at the rate of 50% of training fee paid, subject to a maximum Rs. 10,000 per employee on obtaining industry recognized skill certifications from recognized institutions
(both Government and private institutions). The assistance under this incentive will be subject to an overall ceiling of Rs. 50,000 per year per unit maximum for a period of three years

Reimbursement of VAT and Sales Tax

The eligible Agro and Food Processing units and infrastructure projects will be provided reimbursement of net tax paid by them under Section - 13 of Gujarat Value Added Tax Act against their output tax liability. The reimbursement will be limited to a ceiling
of 70% of the eligible fixed capital investment made by the unit for maximum period of 5 years subject to terms and conditions

Encouragement in Electricity Rate and Duty

The Agro and Food Processing units and infrastructure projects will be provided reimbursement of subsidy on the electricity bills from the beginning of commercial production to five years. The subsidy will be reimbursed as Rs. 1 per unit of the electricity
bill to the unit subject to conditions

The Agro and Food Processing units and infrastructure projects will be given 100% reimbursement in electricity duty along with the subsidy on electricity cost for 5 years subject to conditions

Refund on Registration Fee and Stamp Duty

The Agro and Food Processing units shall be eligible to get 50% refund on stamp duty / registration fee / conversion fee paid for the sale, lease or transfer of land for the project

Strategy for getting maximum benefit from the provisions of Agri Business Policy 2016

Under the Agri Business Policy 2016, a strategy has been enacted with a view to ensure maximum benefits of the incentives offered to agro industries and for the realization of the policy objectives.

Strengthening cluster based development and value chain
Certain crops are produced in greater quantity in different parts of Gujarat. By recognizing such ‘Agri Clusters’, the whole value chain from the farm to market will be strengthened. Assistance will be provided to develop necessary agricultural infrastructure
for the development of each such ‘Agri Cluster’

Modernization of sales structure of agro produce
Efforts will be made to overcome minor lapses in sales of agricultural produce through APMC and to modernize structure of APMC. Apart from this, focus will be on setting up alternative markets, such as terminal markets, e-auction and e-commerce facility, commodity
spot markets, private market yards etc.

Promotion of export of agricultural produce
The agro and food processing units in Gujarat are mostly of micro and medium scale. The Government of Gujarat will help them producing product according to the national and international standards by providing financial assistance

Promote women's contribution in agricultural occupations
Women are greatly engaged in agriculture and agro-processing field. The state government, by providing special incentives to women entrepreneurs, will bring their maximum contribution in this field

Value Addition of Agro Waste and Environmental Protection
Novel efforts would be made for more value addition to agricultural waste, which would prevent wastage of agricultural produce and also provide additional income to farmers. This effort will also help protecting environment. Moreover, it will be ensured that
the units that comply with laws regarding pollution only get assistance from the state government